Legal: Caution Before Using Telemarketing Firms

Employing a third-party call center to drum up business can be lucrative, but make sure they’re following the law.
Published: August 15, 2016

Security, home automation and audio/video professionals often turn to third-party telemarketing agencies to drum up business.

“Done correctly, with the right follow-up processes in place by the dealer, these types of sales are a good way to grow a business,” says one security dealer writing to leading industry attorney Ken Kirschenbaum, a contributor to CE Pro's sister publication Security Sales & Integration.

“I would like to minimize my risk from a call center violating the various rules and laws,” the dealer says.

Kirschenbaum responds that telemarketing agencies will have a standard agreement, but they should be reviewed by an attorney.

At a minimum, Kirschenbaum explains, the service provider should represent:

  • It is licensed where necessary, 
  • It complies with all telemarketing laws, including the Do Not Call List law.
  • It has or subscribes to Do Not Call compliance software program.
  • It agrees to indemnify you for violations of law and penalties.
  • It carries insurance that covers fines and violations and names you as an additional insured.

Strategy & Planning Series
Strategy & Planning Series
Strategy & Planning Series
Strategy & Planning Series
Strategy & Planning Series
Strategy & Planning Series
Strategy & Planning Series